Business Overview

This home based business started in 2018 and makes an air filtration system for dogs. The patented design is outsourced to a local US manufacturer. The product was featured on Shark Tank in 2020. A deal was reached with one of the Sharks for a portion of the business, however the owner has decided to sell the entire business and is looking for someone to take this business to the next level.

Financial

  • Asking Price: $230,000
  • Cash Flow: $64,000
  • Gross Revenue: $266,000
  • EBITDA: N/A
  • FF&E: $1,590
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2018

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is home based and currently located in Austin, Texas. (Home Based)

Is Support & Training Included:

Seller will stay on for one month to train the new owner to ensure a smooth transition, and per separate consultation agreement thereafter.

Purpose For Selling:

Seller has other interests.

Pros and Cons:

There are other competitors that compete in the same area as the subject business, but this product is the only one that works as designed.

Opportunities and Growth:

This company has great potential to grow revenue by expanding the product line and reducing the production cost.

Home Based:

This Business Is Home Based

Additional Info

The business was established in 2018, making the business 4 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell operating businesses. Nonetheless, the true reason and the one they say to you may be 2 completely different things. As an example, they may state "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of other reasons. This is why it is very important that you not count absolutely on a vendor's word, however rather, use the seller's solution along with your total due diligence. This will repaint a much more reasonable picture of the business's present situation.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies finance loans in order to cover things like stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that revenue margins are too tight. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be fulfilled or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area bring in new customers? Often times, companies have repeat customers, which develop the core of their daily profits. Certain variables such as new competitors growing up around the area, road construction, and also employee turnover can influence repeat clients as well as adversely influence future incomes. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the higher the opportunity to build a returning client base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the local mean household earnings influence future revenue prospects?